Securing a loan for an investment property

[Chase R Roehm]

Hello all,

I'm looking for strategies or paths to take in order to find a lender on an investment property. I know the property cash flows regularly, would this help secure a loan with little to no money down?

Thank you in advance

[James Bradin]

If you are looking to put the least amount of property down an FHA loan would probably be best with a minimum of 3.5% down. This will require you to live in it for at least a year. The next best option would be to use a hard money lender, typically used in the BRRRR method. Basically a person loans you money at a higher interest rate 9+%. You buy it with the hard money, use the hard money to renovate, then rent it out, after it has been rented (typically banks want 6 months showing the cashflow), you refinance, pay the harmony lender back + interest, boom you now have a cash flowing property with very little money.

As far as finding a lender, I always recommend looking local.  Local smaller banks and credit unions sometimes will offer loans on things bigger banks will not.  Argue your case if needed, providing metrics and proof that you know it will cash flow.